Question
Calculate the closing capital of an individual from the
following information: ·      Initial capital in business – Rs.50000 ·      Loan taken from relatives – Rs.5000 ·      Profit for the year – Rs.10000 ·      Drawings – Rs.9000Solution
Closing capital = initial capital + profits – drawings                             = 50000 +10000 – 9000                             = Rs.51000
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